What Can Workplace Accidents Cost Your Company Annually?

Has your company encountered any personal accidents in years past? Workplace accidents are common phenomena in most organizations. Whether a common occurrence in your business, or if there are only few accidents a year in your organization, the fact is, these workplace accidents cost your company valuable money and time. Most businesses do experience accidents and the costs incurred to curb this problem are either direct or indirect as illustrated below.

Direct Costs of Workplace Accidents

Once an accident takes place, there are certain costs which one cannot avoid. In most cases, insurance companies cover these expenses, but only if the accidents take place at workplace. Workers involved may undergo workers compensation premiums for any medical expenses that arose from workplace injuries. Other costs that the company insurance may include are hospital’s charges, doctors’ fees, together with ambulance fees. If your company has commercial auto insurance, the insurance company will pay out in the event of work-related trucking accidents or business trip accidents. Other insurance might relate to general liability which pays out with losses in property, bodily injury, and contractual liability.

Indirect Costs of Workplace Accidents

A company experiences indirect costs less frequently. These are costs that insidiously crop up as a result of an accident and that you may not notice right away. The indirect costs usually outnumber the direct. For example, an investigation of the accident costs the company, the legal fees charged to the company, and the training cost for new workers all add up in the aftermath of an accident. This could also involve the replacement of the damaged tools and pieces of equipment. Workplace accidents may sometimes lead to a drastic drop in the level of the company’s performance which is another indirect effect on your expenses. This can be evident in poor customer service, together with poor customer relations.

Accidents are a part of life, but when it comes to doing business, they can have far-reaching consequences. Your power to prevent workplace accidents can go far with the right training and equipment. But you can’t foresee every circumstance. Company accidents can cost you a lot both directly and indirectly. Knowing where you can see drops in productivity and in income is important. It  helps in making their effects less on your company and on your employees. Be ready with an emergency plan, and make sure your work trainings are comprehensive. These will help you avoid any accidents that may arise.